What's a Good Load Rate?
Your goal is to make a $100,000 truck driver salary. With thousands of loads available daily, how do you choose the right loads?
There are two main levers you can control to create a $100,000 truck driver salary.
The first lever is generating revenue and the second lever is controlling expenses.
Getting loads is all about controlling the revenue lever. This can be a challenge because most loads don't generate enough revenue to help you make a $100,000 truck driver salary.
So how do you determine what the right load is? In terms of revenue, how do you know which loads to accept and which loads to turn down? To answer these questions we have to turn to some basic math.
We'll begin by making an assumption based on my real world data.
My expenses are $0.75 per mile (much more on this in blogs about expenses). I travel 10,000 miles per month, or 120,000 miles per year, so my monthly expenses equal $7,500 or $90,000 per year.
In order to make $100,000 per year in salary I have to generate $190,000 in revenue ($100,000 salary + $90,000 expenses).
By dividing $190,000 by 120,000 miles we get $1.58 per mile in revenue that needs to be generated.
But not all 120,000 miles are loaded miles. Approximately 10% of miles will be empty miles, so we need to account for that. By adding 10% to $1.58 we get $1.74 per mile that needs to be generated in order to create a $100,000 truck driver salary. This becomes your GO/NO GO breakpoint.
To find loads I turn to load boards. Read my blog on Load Boards for more info.
-May the wind be at your six and weigh stations closed.